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Horses or unicorns: can paying for performance make quality competition routine?
1Columbia University, USA.
Journal of Health Politics, Policy and Law
|June 21, 2006
Summary
Pay-for-performance (P4P) financial incentives offer benefits beyond competition. Policymakers must understand P4P
Area of Science:
- Health economics
- Healthcare policy
- Antitrust law
Background:
- Pay-for-performance (P4P) financial incentives are commonly believed to enhance healthcare competition.
- However, P4P's impact extends beyond competition, operating through various mechanisms.
Purpose of the Study:
- To analyze the multifaceted mechanisms through which P4P affects healthcare.
- To discuss the implications for antitrust enforcement and government's role in P4P.
- To emphasize the need for a thorough understanding of P4P's theoretical underpinnings.
Main Methods:
- Theoretical analysis of P4P incentive structures.
- Examination of healthcare market dynamics.
- Review of policy implications for government oversight.
Main Results:
- P4P's effects on healthcare are not solely driven by competition.
- Several mechanisms influence P4P's impact, some independent of competitive dynamics.
- Antitrust scrutiny remains relevant, but government's role may need to be broader.
Conclusions:
- Policymakers must look beyond competitive benefits when evaluating P4P.
- A deeper understanding of P4P's theoretical basis is crucial for effective policy design.
- Government intervention in P4P should consider a wider range of impacts and mechanisms.
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